Department of Finance (DOF) Secretary Ralph Recto and the Export-Import Bank of Korea (KEXIM) signed financing agreements for the new Dumaguete Airport Development Project and the Economic Development Promotion Facility (EDPF) that will deliver more infrastructure projects nationwide.

The agreements were signed by Recto and KEXIM Chairman and President Yoon Hee-sung at the DOF office in Manila on Wednesday.

“The new airport will enhance our capacity to welcome a surge of tourists in the post-pandemic era. With the new Dumaguete airport, we anticipate accommodating up to 2.5 million passengers per year, up from just 800,000. From serving limited domestic flights, we can now open the door to international routes,” Recto said during the exchange of notes and signing ceremony.

With a total project cost of PHP17.06 billion, some PHP13.15 billion of which will be supported by KEXIM, the new Dumaguete City Airport project covers 197.55 hectares of land development in the municipality of Bacong, Negros Oriental to construct a new airport facility that complies with domestic and international standards for operational safety and efficiency.

The project is expected to enhance the tourism and trade potential, economic activities, and standard of living in the province.

“The necessity for a bigger and more modern airport is undeniable, especially considering that Negros Oriental currently has only one major airport,” Recto said.

The USD3-billion new EDPF, meanwhile, will serve as an additional financial bridge for realizing the Marcos administration’s Build Better More Program.

“The facility we have signed today with South Korea will enable us to deliver more infrastructure projects nationwide, from roads and bridges to disaster risk reduction efforts,” he said.

Among the projects in the pipeline being considered for possible funding assistance under the new facility are the Panay-Guimaras-Negros Island Bridges; the Consolacion-Liloan Bypass Road Project; the Lapu-Lapu Coastal Road Project of the Department of Public Works and Highways; and the Pampanga Integrated Disaster Risk Reduction and Climate Change Adaptation Project Phase II.

Recto said these infrastructure projects will not only enhance mobility but also improve the lives of Filipinos by creating more jobs and businesses, boosting incomes, uplifting lives, and reducing poverty.

“We will also see to it that we monitor and personally visit the projects to ensure their timely completion,” he said.

The financing for the new Dumaguete Airport project carries concessional terms, with interest rates of 0.05 percent per year for non-consulting services, to be repaid in 40 years, inclusive of a 10-year grace period.

The individual financing of projects to be lined up under the EDPF will carry an indicative interest rate of 1.2 percent, to be repaid in 25 years, inclusive of a seven-year grace period. (PNA)